Hannah Arendt considered calling her magnum opus Amor Mundi: Love of the World. Instead, she settled upon The Human Condition. What is most difficult, Arendt writes, is to love the world as it is, with all the evil and suffering in it. And yet she came to do just that. Loving the world means neither uncritical acceptance nor contemptuous rejection. Above all it means the unwavering facing up to and comprehension of that which is.
Every Sunday, The Hannah Arendt Center Amor Mundi Weekly Newsletter will offer our favorite essays and blog posts from around the web. These essays will help you comprehend the world. And learn to love it.
Clocking in as the longest article ever in Time (h/t Dylan Byers), Steven Brill’s cover story is the single-best account of the insanity and corruption of our current medical system. Why do we accept the skyrocketing costs of medical care? “Those who work in the health care industry and those who argue over health care policy seem inured to the shock.” Brill shows us why the bills are really way too high. Hint: it is not because the care is so good. There are so many excess costs in the system, that reforming it should be easy, if it weren’t so corrupt.
David Goldhill wants to give all working Americans $1,800,000, the amount he calculates a 23 year-old beginning work today at $35,000/year will pay, directly or indirectly, in health care insurance benefits. Goldhill argues that our health care system wastes most of that money because people have no incentive to attend to costs. He suggests a dual system. Give every American health insurance for truly rare and unpredictable illnesses. But for regular costs and smaller emergencies, he would refund workers the money they are losing and let them pay for healthcare themselves.
Oliver Sacks walks through his past and, with the help of his brother, discovers that a memory he had believed his own had actually been that of another. Starting from there, he gives a short account of the weakness of individual remembering, which allows us to take in something we've heard or seen and make it our own. He concludes, finally, that "memory is dialogic and arises not only from direct experience but from the intercourse of many minds."
Michael Lewis writes of the rise of an unapologetic business class in the 1990s and early 2000’s, that they enjoyed the “upside to big risk-taking, the costs of which would be socialized, if they ever went wrong. For a long time they looked simply like fair compensation for being clever and working hard. But that’s not what they really were; and the net effect was… to get rid of the dole for the poor and replace it with a far more generous, and far more subtle, dole for the rich.”
Five women. “Two are wives and daughters in ordinary families unable to comprehend why such misfortune has overtaken them. A third is a young bride living in the household of a high party official. The last two are wives of the Master’s executioners. These stories are based on their memoirs—some written by themselves, others by close friends or by their children. These five women put a human face on the terror of Stalin’s purges and the Gulag in the Soviet Union of the 1930s.”
“Debt doesn’t look like much. It has no shape or smell. But, over time, it leaves a mark. In Spain, it manifested itself, first, as empty buildings, stillborn projects, and idled machines.” So writes Nick Paumgarten. To see how debt looks and smells, look at Simon Norfolk's surreal photographs of Residencial Francisco Hernando, an unfinished development near Seseña, Spain. Working his way through a half-finished city with few people in it, Norfolk's photography suggests that even beginning construction was an act of hubris; "everyone," he says, "wanted to get rich doing nothing."
The Arendt Center’s 2012 conference “Does the President Matter?” asked whether political leadership is still possible today. Guatam Mukunda believes that we can measure the value of a particular leader based on their behavior at the margins—what did that person accomplish over and above what another would have been able to do? In the accompanying video, Mukunda argues that leaders can only be great or terrible when the people selected for such roles are relatively unknown to those making the selection. In an age of information, the chances are slim.
This week on the blog
This week on the blog, we argued that American reformers should shift their efforts at reforming education towards high school and pointed towards Richard Kahlenberg's recent piece in The Chronicle of Higher Education, adding that "poverty, more than race or gender, is increasingly the true mark of disadvantage in 21st century America." We also continued the inquiry into the growing threat that entitlements pose to the next generation, highlighting Geoffrey Canada and Peter Druckenmiller's argument that entitlements are a generational theft that must be arrested. Elsewhere, Na'ama Rokem quotes from Arendt's only Yiddish-language article to explore the philosopher's language politics and her Jewish identity. Jeff Champlin looked at some similarities between Habermas and Arendt in their understandings of power. In the Weekend Read, Roger Berkowitz argues that we need to free federalism from its present partisanship and recall the important connection between federalism and freedom. Finally, if you didn't get around to our remembrance of Ronald Dworkin, you should take some time and give it a read.
Until next week,
The Hannah Arendt Center
Walter Russell Mead is getting it right about the utter selfishness of the boomer generation and how it is bankrupting our governments, thus leaving government incapable of public services for the next generation.
This story is about more than just high gas prices or taxes. It’s yet another case of the boomer generation stealing from younger generations. Besides promising themselves fat pensions that they refused to save money or tax themselves to pay for, the boomers let the country’s infrastructure run down. The next generation is already staggering under a rising tax burden, student loan debt, and retirees’ massive health care bills. On top of all this, they now have to pay through the nose just to keep the roads, bridges, and tunnels in good repair after years of neglect and deferred maintenance.
When people talk about the cost of entitlements or pensions, there is often a whiff of condescension, as if government employees don’t deserve their benefits. Often forgotten is the fact that private pensions are underfunded as well, and they are insured by the federal government. And now we are told that the military may have the biggest pension problem of all. Here is what the Financial Times reports:
Of all the politically difficult budget issues that Mr Hagel will face, few are more charged than the question of military entitlements which have risen sharply over the past decade. A report last year by the Center for Strategic and Budgetary Assessments concluded that at current rates, “military personnel costs will consume the entire defence budget by 2039”. Robert Gates, Mr Obama’s first defence secretary, once warned that these expenses were “eating us alive”.
Just as pensions and entitlements will soon crowd out all other government spending, so too will military pensions crowd out all military spending.
No one today can responsibly argue against pensions and health care. And no one can call the soldiers lazy burdens on the public weal. But neither can we fail to recognize that our addiction to entitlements is destroying our politics and our public spirit. We are sacrificing public action—be it the pursuit of scientific knowledge, the erecting of monuments, the education of our young, the building of infrastructure, and even a well-outfitted military—for the private comfort of individuals. It is no wonder that our political system is broken at a time when all incentives in the country lead interest groups to focus on parochial interests above the common good. It is inconceivable that this situation is not in some way related to the emergence of entitlements as the central function of government.
The question is one of principle. We have gone from a common sense that people are responsible for themselves and the government provides a safety net to a common sense that everyone should receive an education, everyone should receive healthcare, and everyone should receive pension benefits for as long as they live. It is possible to embrace the latter common sense, but with it comes a significantly higher tax burden and a much more communal ethic than has typically reigned in America. This is not a problem that hits only public employees. It is endemic throughout society. And our military.
The Pew Center on the States issued a study this week that sheds further light on our municipal pension problems, a political crisis with strong Arendtian overones. Where most studies have focused on the enormous problems faced by states, this one focuses on cities:
Cities employing nearly half of U.S. municipal workers saw their pension and retiree health-care funding levels fall from 79% in fiscal year 2007 to 74% in fiscal year 2009, using the latest available data, according to the Pew Center on the States. Pension systems are considered healthy if they are 80% funded.
The growing funding gulf, which the study estimated at more than $217 billion for the 61 cities in the study, raises worries about local finances at a time when states are also struggling to recover from the recession. Property-tax revenue dipped during the housing crisis, straining city finances amid a weak national economy.
The reason to pay attention to the problems in cities is that cities have even less ability to solve their pension shortfalls than states. The smaller the population, the more a city would have to tax each citizen in order to help pay for the pensions of its retired public workers. The result is that either cities get bailed out by states and lose their independence (as is happening in Michigan) or the cities file for bankruptcy (as is happening in California).
Also this week the NY Times ran a story about San Bernadino, one of three California cities to file for bankruptcy as a result of their pension obligations. It is a stark reminder of why we should care about public pensions:
Five months after San Bernardino filed for bankruptcy — the third California city to seek Chapter 9 protections in 2012 — residents here are confronting a transformed and more perilous city. After violent crime had dropped steadily for years, the homicide rate shot up more than 50 percent in 2012 as a shrinking police force struggled to keep order in a city long troubled by street gangs that have migrated from Los Angeles, 60 miles to the west. … “The parks department is shredded, the libraries similarly,” [the mayor] said. “My office is down to nobody. I’ve got literally no one left.”
A similar fate is befalling other California cities that are in bankruptcy:
Stockton, Calif., which filed for bankruptcy in June, has followed a similarly grim path into insolvency, logging more homicides last year than ever before. In Vallejo, Calif., which filed for bankruptcy in 2008, cuts left the police force a third smaller, and the city became a hub for prostitution.
As I have argued, the pension crisis is not arcane policy or economics. It is a crisis of politics and government. It came about because municipal and state governments offered irresponsible contracts to public employees. There is no way these contractually guaranteed pensions can be paid. By refusing to face up to this fact now, we are making the problem worse. The result will be the hollowing out of local government services across the country. Police forces will be decimated. Public libraries and fire stations will close. Parks will fall into disrepair. All in order to pay full pensions to retirees. This of course won’t happen. Cities will refuse to do it, as they have in California and elsewhere. The result will then be bankruptcy, which comes with its own tragedies.
For anyone who cares about government and wants government to succeed, the pension problem must be addressed, for it threatens not only economic disaster, but political cynicism beyond even today's wildest dreams. Across the country, teachers, policemen and firemen, not to mention civil service employees and others, will see their promised pensions shrink precipitously. Not only will this devastate retirement nest eggs for millions of people, it will fray the social contract—pitting young against old and taxpayers against public employees. This is already happening.
What is more, the pension crisis will likely further erode local control over our lives. As municipalities go bankrupt they turn to states. As states go bankrupt, they turn to the federal government. Bailouts come with strings and ever-increasing levels of bureaucracy. For those who understand that our federal system was designed to thwart the establishment of sovereignty by dispersing power through competing levels of governance, the pension crisis has the potential to radically disempower local governments and further the amassing of federal power already long underway.
There may not be pretty or easy solutions, but ignoring or denying the problem is no longer an option. It is time for those who care about government and freedom to engage the pension issue and insist to our legislators that we act to treat pensioners with respect but also preserve the power of local governments to support rich and vibrant political institutions.
The Wall Street Journal, The New York times, and Guernica—it seems everyone is excoriating John Roberts' opinion upholding the health insurance mandate in the Affordable Care Act. The WSJ calls the precedent Roberts set "grim." The Journal, in another editorial, writes that Roberts' decision is "is far more dangerous, and far more political, even than it first appeared last week." Roberts has, the WSJ argues, substituted "one unconstitutional expansion of government power [the commerce clause] for another [the taxing power]," and, in doing so, rearranged "the constitutional architecture of the U.S. political system."
In Guernica, Ciara Torres-Spelliscy, argues that "Closer inspection of the actual written opinion shows Roberts gave those who want to hem in Congress’s power everything they wanted." Torres-Spelliscy agrees with the WSJ that, in her words, Roberts "provided the blueprint for a radical rebalancing of powers among the three branches." But while the WSJ thinks Roberts is expanding governmental power, Torres-Spelliscy argues he is radically constricting it.
What both sides in this debate get right is that Roberts' opinion is deeply important and that it will likely change the way that the U.S. Federal Government interacts with citizens. That said, for those concerned with freedom within a constitutional government, as was Hannah Arendt, Roberts' opinion offers much to be excited about. It deserves greater and more serious consideration than it has so far been given.
Roberts' opinion begins with an eminently sensible manifesto for judicial restraint. Like his hero Oliver Wendell Holmes Jr., Roberts believes the Court should defer to Congress except in those cases where the legislation cannot be squared with the Constitution. The devil is always in the details of such a squaring, but at a time of ideological posturing, Roberts' opinion is a welcome read:
Our permissive reading of [Congress' enumerated powers] is explained in part by a general reticence to invalidate the acts of the Nation's elected leaders. "Proper respect for a co-ordinate branch of the government" requires that we strike down an Act of Congress only if "the lack of constitutional authority to pass [the] act in question is clearly demonstrated." Members of this Court are vested with the authority to interpret the law; we possess neither the expertise nor the prerogative to make policy judgment. those decision are entrusted to our Nation's elected leaders, who can be thrown out of office if the people disagree with them. It is not our job to protect the people from the consequences of their political choices.
Whatever one thinks of Roberts' actual legal opinion, the statesmanship he evinces is welcome. In the most politically sensitive case since Bush v. Gore, Roberts defused a potential explosion threatening to undermine the Supreme Court's legitimacy. As the Arendt Center's Bard colleague Walter Russell Mead writes, "in form and execution this was a decision that will reinforce the Court’s position in the country while, so far as I can see, avoiding the possibility of harm based on the faulty constitutional theories that the health care law’s backers put forward." The introductory pages of the Roberts opinion offer a balanced and at times inspired primer in Constitutional interpretation and U.S. Constitutional history.
Beyond the near pitch-perfect tone, Roberts' opinion offers much to be thankful for. It is one of the most legally important opinion the Court has handed down in decades. It seems worth making a few points.
1. Many have derided Roberts for considering the mandate payment a tax when the legislation called it penalty. Let's give him credit for speaking frankly. It really was a tax. The Congress simply didn't want to call it a tax for political reasons. The mandate is a payment required to be made to the Treasury, collected by the IRS, with no Criminal or Social Stigma of wrongdoing attached to it. Roberts did not have to call it a tax, but he did so on the principle of judicial restraint, interpreting the statute in a way most likely to maintain its constitutionality. That is the role of a Supreme Court in a constitutional republic.
The distinction Roberts employs to call the mandate a tax makes total sense. He says that a payment is a penalty when non-payment is considered a wrong. If you speed and pay a ticket, you have committed a misdemeanor. That is a penalty, not a tax. But when the payment is simply made without any claim that the action generating the payment is wrong, that is a tax. So, if you purchase cigarettes or a speed boat, you pay a special tax. It is your choice.
In the case of the mandate, the Affordable Care Act says that if you don't purchase insurance, you pay a certain amount to the treasury. That amount is less than you would normally pay for insurance in many circumstances. Thus the legislation expects and imagines people for whom the payment is lower than purchasing insurance to actually pay the payment rather than purchase insurance. This is evidence for Roberts that there is no stigma associated with the payment and that it really is functioning as a tax rather than as a penalty. There is no sense of a wrong. Despite what Congress said for political purposes, Roberts is on good grounds to call the mandate payment a tax.
2. Roberts blazes a new path on which the federal government can continue to regulate the actions of citizens. The Congress must now increasingly justify its regulatory initiatives by appeal to the power to tax rather than the power to regulate commerce. While this may seem merely a semantic distinction, it is not a meaningless difference. And this is the heart of the real importance of Roberts' opinion.
If the mandate payment had been upheld under the commerce clause (as Justice Ginsburg's dissent advocated), then the government would have been permitted to do anything it wanted or needed to do in order to achieve its ends of creating a health care system. For example, Congress could have simply required people to purchase health care. You may think that is what Congress did. But according to Roberts, such a requirement is no longer constitutional. Instead, what the Congress did was say: "You have a choice. You can buy health insurance or you can forego buying health insurance and pay a tax to support the health insurance market."
What is the difference? Under the commerce clause, the government can tell you what to do (buy insurance) and it can punish you if you do not do so. Under the taxing power, all the government can do is require people to pay money into the treasury. This is not a meaningless difference.
While the power to tax can be terrible and the power to tax is also in certain cases the power to destroy, this is not usually the case. When taxes are reasonable and not destructive, an individual charged with buying insurance or paying a tax can always choose to pay the tax and not buy insurance.
This is the emancipatory thrust of Roberts' opinion. By shifting the Congressional authorization from Commerce to Taxation, he has struck a surprising balance between freedom and the government's power to influence behavior. On the one hand, it is now significantly harder to justify congressional authority over individuals that will compel them to act in a certain way. On the other hand, Congress can pursue its ends by taxation rather than by regulation.
3. To make it clear just what it is that Roberts allowed, he offers an example that I think is helpful.
Suppose Congress enacted a statute providing that every taxpayer who owns a house without energy efficient windows must pay $50 to the IRS. The amount due is adjusted based on factors such as taxable income and joint filing status, and is paid along with the taxpayer’s income tax return. Those whose income is below the filing threshold need not pay. The required payment is not called a “tax,” a “penalty,” or anything else. No one would doubt that this law imposed a tax, and was within Congress’s power to tax. That conclusion should not change simply because Congress used the word “penalty” to describe the payment. Interpreting such a law to be a tax would hardly “[i]mpos[e] a tax through judicial legislation.”
Roberts is right here. The real reason to like his opinion is that by shifting the authorization from commerce to taxation, Roberts affirms the federal government's right to influence behavior but weakens the federal government's authority to compel citizen behavior. His argument is that it is more consistent with federal limits and the protection of freedom to allow the government to tax us then to regulate us.
There are still many unanswered questions here. It is unclear how impactful Roberts opinion will be in the future. But he has offered an alternative to the ever-expanding use of the commerce power to justify intrusive federal regulations, while still asserting that the federal government does have the power to motivate and behavior through its power to tax.
It is rare to read a Supreme Court opinion that is as surprising as it is thoughtful. It is also worth doing so. Robert's opinion is your weekend read.